EG Group Acquires Kroger's Convenience Stores in USA
The Blackburn, England-headquartered EG Group has entered into a definitive agreement with The Kroger Co., the third largest grocery retailer in the world, to buy its 762-unit convenience store business in the United States for $2.15 billion. Including 66 franchise operations, the network is active in 18 states and employs 11,000 people working under the Turkey Hill, Loaf ’N Jug, Kwik Shop, Tom Thumb and Quik Stop marquees.
Kroger’s convenience store business generated revenue of $4 billion in 2016, including the sale of 1.2 billion gallons of fuel. As part of the transaction, the EG Group will establish its North American headquarters in Cincinnati, Ohio, and continue to operate stores under established banner names. The deal does not include gasoline dealers or Turkey Hill Dairy, which manufactures ice cream and drinks.
The British company is a major petrol forecourt convenience store operator in Europe, with 2,600 sites in the UK, France, the Netherlands, Belgium, Luxembourg and Italy. It employs over 12,500 people across leading retail brands such as ESSO, BP, Shell, Carrefour, Louis Delhaize, SPAR, Starbucks, Burger King, KFC, Greggs, Pomme de Pain and Subway.
As announced in late 2017, the EG Group secured approximately 1,000 petrol forecourt assets from Esso in Germany, which will be transferred and integrated into the existing network during the fourth quarter of 2018. With the inclusion of the Kroger units, the company will own and operate about 4,400 sites in Europe and the United States.
“This is an exciting time, as the entry into the USA market presents a fantastic opportunity to deliver a successful retail offer to consumers across the various states,” said Mohsin Issa, EG Group founder and co-chief executive officer. “We are committed to investing in the Kroger network, partnering with leading retail brands and working with the exceptional management team and associates transferring across to deliver a comprehensive retail offer.”